2018 (5) TMI 471 - AT - Central Excise

Rectification of mistake - even though the duty stand reduced, the original penalty confirmed in the order will stand maintained - Held that - there is an error in paragraph 4 of the order, which is contrary to the direction given to the adjudicating authority for the requantification of the duty - Last sentence of paragraph 5 may be corrected - ROM Application allowed.

Summary

Issues: Correction of apparent error in the order regarding the penalty under Section 11AC of the Central Excise Act.

In this judgment by the Appellate Tribunal CESTAT MUMBAI, the applicant filed a ROM application pointing out an error in paragraph 4 of the previous order. The Tribunal had earlier maintained the penalty under Section 11AC imposed on the appellant for not declaring excise duty collected to the department. However, the Tribunal had also directed the adjudicating authority to adjust the duty against CENVAT Credit and re-quantify the penalty accordingly. The applicant argued that the penalty should be adjusted based on the duty finally confirmed. The Assistant Commissioner representing the Revenue supported the Tribunal's order.

Upon careful consideration, the Tribunal acknowledged the error in paragraph 4 of the order. The paragraph was corrected to state that the penalty under Section 11AC is correctly imposable due to the suppression of facts by the appellant. However, the penalty should be re-quantified in line with the duty finally confirmed. Additionally, the last sentence of paragraph 5 was corrected to specify that the penalty should be re-quantified in accordance with the re-quantified duty after adjusting any available CENVAT Credit. The appeal was disposed of by way of remand with the above corrections, and the ROM application was allowed in the terms stated.

In conclusion, the judgment addressed the correction of an apparent error in the order regarding the penalty under Section 11AC of the Central Excise Act. The Tribunal rectified the language in the order to ensure that the penalty is re-quantified in accordance with the duty finally confirmed after adjusting any applicable CENVAT Credit, thereby providing clarity and consistency in the decision-making process.